Creating a well-written shared agreement helps your customers avoid frequent pitfalls and costly litigation. A shared agreement is a contract for the drilling, maintenance and use of a well. As a contract, the essential provisions of the agreement must correctly identify the parties, land, well and water distribution systems, maintenance commitments, easements and registered water rights, if any. The parties must be identified with their full legal names exactly as stated in their document. The land, wells and easement sites subject to the agreement must be identified on the basis of valid legal descriptions and a diagram showing the location of the well and distribution system as exposures. Failure to properly identify and specify well uses and maintenance commitments in the agreement can lead to future misunderstandings and costly litigation. It is preferable for the parties to consider how the costs will be allocated if the use of the well is extended in the future. Even if a common well is only used for domestic needs, an increase in the water table withdrawn may require a larger well or infrastructure. If one party wishes to extend its use of the well and the other does not, this may lead to a conflict between them with regard to the additional costs associated with enlargement. A common restriction for domestic wells is a bar for the use of water for swimming pools.
The agreement should expressly advise against other identifiable large-scale uses, either by mentioning the use or by measuring the use of the amount of water for each connection. In order to avoid confusion, the parties must clearly state their purpose for a shared agreement, which is usually a transfer of a property right in the water. Parties should consider whether their use will be continuous, periodic or seasonal. In addition, the provisions of the agreement should stipulate that the use is exclusively in the national territory or that it includes agricultural or commercial exploitation. Clearly declaring the purpose of the well contract will avoid problems between the current parties and all subsequent owners of land subject to the contract. This agreement is concluded when the property is sold to a new owner with a common well. The process of signing the agreement won`t take much time….